Nidec Resolves to Make Nidec Copal Corp., Nidec Tosok Corp. and Nidec Seimitsu
Corp. Its Wholly Owned Subsidiaries
KYOTO, Japan, April 23, 2013 (GLOBE NEWSWIRE) -- Nidec Corporation ("Nidec")
(NYSE:NJ) announced today that, at its board meeting held today, it has
resolved to implement share exchange transactions to make Nidec Copal
Corporation ("Nidec Copal"), Nidec Tosok Corporation ("Nidec Tosok") and Nidec
Seimitsu Corporation ("Nidec Seimitsu") wholly owned subsidiaries of Nidec and
agreed accordingly with the respective companies. The background of the
resolution is as follows.
The business environment surrounding Nidec remained difficult throughout the
fiscal year 2012 against the backdrop of a persistent macroeconomic weakness,
evidently characterized by the prolonged EU debt crisis and
milder-than-expected demand growth in emerging countries, including China.
Despite the signs of bottoming out seen towards the end of the last fiscal
year, as illustrated by the gradual improvement in the U.S. economy tied to
the government's monetary easing measures and growing anticipations for the
Japanese companies turning around on depreciated Yen, the uptrend still fell
short of improving Nidec Group's business environment in general.
Since undergoing a notable decline in demand for some of its key products used
in PCs, digital cameras and liquid-crystal-display panel manufacturing
facilities in the second half of the fiscal year, Nidec Group has focused
single-mindedly on reshaping its earnings structure to emerge stronger from
the increasingly fierce global competitions. As part of the structural reform
initiatives, Nidec Group has decided to take a new direction to build on its
collective strength by bringing out the best in each of its group companies.
As a result, the company determined that it would be valuable to expand
corporate values not only of Nidec Copal, Nidec Tosok and Nidec Seimitsu but
of the entire Nidec Group for the purpose of achieving prompt decision-makings
and flexible business managements and enhancing the whole group synergies by
making Nidec Copal and Nidec Seimitsu, of which businesses are overlapping in
small precision motor areas and Nidec Tosok, of which business is overlapping
in vehicle installation area, wholly owned subsidiaries of Nidec.
For further details, please visit the Company's website at:
CONTACT: Masahiro Nagayasu
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